Aguia Resources (ASX:AGR) has reported sales of its Pampafos organic phosphate product, exceeding $2.3 million within six weeks of commissioning its processing plant, including $1.6 million in sales agreements secured this week.
The company completed its first commercial delivery of Pampafos on 7 July to the Markus family, a soybean producer operating approximately 3,000ha and 6,000 head of cattle across Rio Grande do Sul.
The 7 July delivery marks AGR’s transition from commissioning to commercial operations.
Aguia secured $1.6 million worth of sales agreements with three agricultural distributors in Rio Grande do Sul: Trade Sul Agropecuária, Comercial Fraccari, and Invernada Agroinsumos.
These distributors serve key farming regions across the state’s southern, south-central and western border areas, including soybean, rice, and beef cattle production zones.
The company says revenue from the contracts will be recognised upon delivery between August and December of this year, while inventory is available for the peak fertiliser application season in August, September, and October.
CEO Timothy Hosking says the developments demonstrate that “Pampafos can compete effectively with conventional phosphorus sources across relevant farming systems in southern Brazil”.
“Pampafos’ first commercial delivery, together with additional sales secured through to the end of 2026, are significant milestones and confirm that the Caçapava do Sul operation has advanced beyond commissioning into customer fulfilment,” Hosking adds.
“As a locally produced phosphate fertiliser, Pampafos is well-placed to support stronger supply security for Brazilian agriculture. We anticipate sales will accelerate from hereon as the local agricultural sector commences soil preparation ahead of the Summer planting season.”
Nestor Markus says his family previously used natural phosphate, but inconsistent availability of imported products limited continued use.
“With Pampafos now produced locally, we are encouraged by the opportunity to resume using natural phosphate and pass this practice on to the next generation,” Markus notes.
According to Aguia, the facility is expected to support regular customer deliveries at plant capacity exceeding 200,000 tonnes per annum.
Commercial production began in late May, with customer deliveries starting in July, following completion of final equipment commissioning and plant optimisation.
Above-average rainfall in June temporarily affected mining, blending, and drying operations, but final commissioning and plant testing are now complete.
The company says discussions have extended beyond its initial focus area in southern Brazil to customers in Uruguay and Paraguay.
The recent release of Brazil’s 2026/27 Crop Plan provides subsidised rural credit through commercial banks, helping farmers fund seasonal production costs including fertilisers.
AGR says its immediate operational priority is to increase mine production during July and establish a strategic stockpile to support plant operations and mitigate rainfall-related disruptions.
Aguia Resources is a multi-commodity mining company with projects located in Colombia and Brazil.
Write to France Pinzon at Mining.com.au
Images: Aguia Resources
